POPA ReconWhy do you feel worse when you lose a dollar than when you win a dollar?
Why do you feel worse when you lose a dollar than when you win a dollar? - Bernoulli's utility theory Psychological/economic theory published in 1738. The more money you have, the less joy you get from earning extra money. - Why it is important in trading Trend following strategies typically involve several small losses + several large profits. So even if the odds of winning are low, the big wins should outweigh the losses. Ideally, you should aim for a ratio of 3:1 (1 loss vs 3 profit) or higher. 👉Original text #emotions
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